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Investment in Bitcoin or Real Estate? Which one is better in Pakistan

There has been a major shakedown faced by the world market in almost all sectors. The social and political changes, happening around the world have introduced newer and better means of investments, physical and digital both. It has been an old practice, comparisons being made between the new technologies and the old school practices.

Here we have another such comparison for you! Whether the Bitcoin (cryptocurrency) investment or the Real Estate investment, which is better and beneficial for the long term asset building.


Recently, we have seen that Bitcoin has turned the whole investment mechanism upside down in the financial engineering world. With a range-bound of as low as $11,100, Bitcoin has estimated through highest ranges $19172.59 by the end of 2017. The status changed with the beginning of this year, from as low as $7022.69 to the highest $11166.86 as of today. As a result of the varying status of Bitcoin; as a currency, stock, and commodity, these three categories have been severely over powered.

So how can Real Estate investments be compared with Bitcoin investments?

A major school of thought has always stated that land sales always have higher chances of returns. But unfortunately, the new technological advancements and the upcoming economic phenomena have changed this thought process.

Humans have always looked out for better and easier ways of earning money. Initially, this search resulted in the concept of making investments. One way or the other, investing is easy money; you don’t always have to work for this amount.

The recent type of investment, which is in trend and more and more people are moving towards it, is Bitcoin. You can google “Bitcoin”, and a gazillion articles and blogs, enthusiastically praising the pros of Bitcoin, to the extent that you might overlook the cons.


Real Estate & Bitcoin Investment– A comparison

The major comparisons between land investments and bitcoin are based on the following factors:

  1. Volatility
  2. Existence
  3. Regulation
  4. Acceptability

A detailed comparison of these factors is as below:

  1. Volatility

The volatile nature here basically means the long term benefits they both might have, the stability and predictability about which the investor can be sure of. So when Bitcoin and Real Estate are to be compared, we see that Bitcoin is an unpredictable phenomenon, same goes for the land business, but in long term, we are not sure of where Bitcoin will be standing, but here we would be sure that we at least are getting something out of it. The unpredictability of bitcoin is best explained in this graph:

We can see the trend right here. Just in between December 2017 and February 2018, we can see the lowering value. You would be surprised to know, that it can be expected of bitcoin to even reach the value of zero to none.

See, we buy land, we try to sell it. Even if we fail to sell this land, we have the option of building up a house, and then either sell it or rent it out. But we still are getting something out of it, but what about Bitcoin? How long can you be sure that this cryptocurrency will stay? How long can you be sure that this phenomenon will work? You’re not, right?

  1. Existence

See you can’t compare land with digital money. You know there is no physical existence to Bitcoin. Why would you invest your savings into something that doesn’t even have a physical existence?

  1. Regulation

We, humans, keep ranting about laws and regulations not being followed, no check and balance by the authorities, blah, blah. But have you ever considered the thought of having zero rules? Zero regulation? Everybody doing what they feel like. Zero checks and balance? For a moment, you would feel relieved, but after a certain time, you would curse even yourself for living in a world with no rules. Similarly, how long can you see an unregulated business fight its way through this world? One day? Six months? 10 years? How long can you guarantee that this will stay?

In a world, where people speak the hell out of their lungs if they feel any discrepancy in the usual banking system, in even the smallest shop, would this currency, which has no certain value, work?

Whereas in Real Estate, you do witness the uncertainty of rates and land, but at least everything can be answered and proved with a fact. Land business has strict laws and regulations world over, and people are going to buy or sell land, it’s a basic necessity.

  1. Acceptability

If you live in Pakistan, you are more likely to face serious issues with bitcoin. Why? Because Bitcoin has been banned in many countries including Pakistan, Thailand, China, Taiwan, India, Germany, and Bolivia.

​Especially in Pakistan, on the request of FIA and FBR, State Bank of Pakistan has declared Bitcoin to “ILLEGAL” in Pakistan, following to which, banks have started blocking bitcoin. So what do you think? I don’t think you all have a Swiss account for hiding this money?

Should you be switching?

After looking into all the above-mentioned factors, I don’t think this new trend of Bitcoin Investments would work for anyone if we see it as a long-term asset. Why? Because even if it is the best investment for today, but what if it shuts down tomorrow? From whom and from where would you ask for your money back? Who will answer your questions? No one will.

To be realistic, Real Estate business is going to stay, it will either fail or flourish, but we know it will stay. You will not lose all your money. You will get at least something out of it. People will look for property purchase and sale. After all, who doesn’t like having their own house? Laws and regulations will be there for you to get your answers from.

We all know that something is better than nothing. So for us, Real Estate for the win. For you? Well, the choice is yours!

For more interesting real state news, visit Berq Properies.

Technology Magazine Pakistan